Factors Influencing Entrepreneurship:a Comparative Analysis Among Farmers In Shaanxi, Shandong, Henan And Gansu Provinces, China

This study analyzed the factors influencing entrepreneurship among farmers in Shaanxi, Shandong, Gansu, and Henan provinces; a comparative analysis described the socio-economic and demographic factors. This work utilized primary data collected in 2014 from 1,420 households across the four provinces. This research adopted a probit regression; first Household characteristics then credit characteristics (that make up the socioeconomic and demographic factors) were all regressed against entrepreneurship (in this case, probability of starting a business). Thereafter ANOVA was used to establish the comparative analysis of influencing entrepreneurship.The findings indicate that overall household characteristics and individual credit characteristics significantly influence the probability of starting a business. In addition credit characteristics were noted to influence entrepreneurship. However, the general findings indicate that influence of credit and individual characteristics on entrepreneurship had different significant across the four provinces; according to good prospect for development of that particular industry’s market, personal technology and ability. Also the fact that the nature of the work in that particular industry was easy to perform and required low levels of technology were the reasons farmers chose to venture in their respective industries.In addition, this study identified financial institutions, family economic condition, Government policy, cultural environment, industry, market environment, personal qualities, family background, and tax administrative environment as the main factors that promote entrepreneurship.